Buying a home is something that many people in Ohio and elsewhere worry that they will never be able to afford to do. Though they may not have bad financial habits, they may not qualify for a mortgage from a traditional lender for a variety of reasons. However, they may be able to purchase a home if the seller offers seller financing.
Rather than having to go through a traditional lender, like a bank or credit union, the prospective buyer may be able to obtain financing from the person selling the home. This type of financing can have its pros and cons, and it may not always be obvious whether a seller could offer financing. If a potential buyer is interested in seller financing, asking the right questions is essential.
Some questions to ask a seller regarding this type of financing include:
- Is the seller open to the idea of providing financing?
- Is the seller free from obligations to a mortgage lender and is therefore able to provide seller financing?
- Would the seller be willing to accept financing terms offered by the buyer?
- What information could the buyer provide to show the seller that he or she is a good candidate for seller financing?
It is important that buyers understand that seller financing does not necessarily mean that the terms will be any more favorable than those that a traditional mortgage lender would offer. Additionally, if a seller does offer financing upfront, it is still worth considering other financing options before simply agreeing to this opportunity. In any case, it is wise to fully understand the legal obligations associated with mortgage financing and buying a home in Ohio.